Oct 1 (Reuters) - Egypt’s stock index fell 1.2 percent on Monday because of concerns that its currency could be vulnerable, while Saudi Arabia and United Arab Emirates markets rose, buoyed in part by high oil prices.

Twenty-five of the 30 stocks in Egypt’s blue-chip index fell, as Egypt underperformed MSCI’s emerging markets index, which was almost flat.

Middle East fund managers have turned negative towards Egyptian equities because of concern that the currency could weaken as global interest rates rise and foreign investors cut holdings of Egyptian Treasury bills, a Reuters poll showed on Sunday.

Thirty-one percent of managers now expect to cut allocations to Egyptian equities and only 8 percent to raise them in the next three months, the most negative balance for Egypt since February 2017.

Alinma Investment Co, a unit of Alinma Bank, signed an agreement with Saudi Real Estate Co to establish a real estate fund that will develop three sites in Riyadh with a value of 1.5 billion riyals ($409 million). Saudi Real Estate rose 0.9 percent and Alinma Bank was up 1.3 percent.

The Dubai index gained 0.5 percent on the back of a 2.4 percent rise by Emaar Properties, which in the past couple of weeks has been recovering from 30-month lows.

Construction firm Drake & Scull rose 2.6 percent; the loss-making company postponed last Thursday’s shareholder meeting to discuss its future to Oct. 4, citing the lack of a quorum.